Trafiksol ITS Technologies' SME Market Debut Postponed Amid Regulatory Queries

New Delhi, Sep 17 (KNN) The scheduled stock market debut of Trafiksol ITS Technologies on the BSE SME platform, initially set for September 17, 2024, has been postponed following intervention from the Bombay Stock Exchange (BSE).

The exchange announced via X (formerly Twitter) that the listing has been delayed pending the resolution of certain queries raised by the issuer. Market participants were advised to take note of the delay.

Trafiksol’s Rs 44.8-crore public offering, consisting entirely of a fresh issue of 64 lakh shares, had garnered significant investor interest, being subscribed 345 times over its three-day subscription period.

Non-institutional investors were especially active, subscribing to the issue 699 times the allotted portion, while retail investors and qualified institutional buyers (QIBs) subscribed 317 and 129 times, respectively.

SME IPOs, such as Trafiksol's, are approved directly by the BSE and NSE, without going through the Securities and Exchange Board of India (SEBI) for review.

However, SEBI has recently expressed concerns about potential manipulation in the relatively less regulated SME segment, where many stocks experience substantial gains upon listing. The regulator has urged investors to exercise caution when engaging with this market.

Founded in 2018, Trafiksol ITS Technologies specialises in intelligent transportation systems (ITS) and automation solutions.

The company provides a wide range of services, including software development and consulting, with products that include operating systems, business applications, and computer games.

The company plans to use the funds raised from the IPO for software purchases, debt repayment or prepayment, working capital requirements, and general corporate purposes.

(KNN Bureau)